Quote:
Originally Posted by taylor192
I have $1M of liability. I consider that I rarely drive > 80kmph, and most of the time are on 60 kmph streets in metro Van, so the chances of a terrible accidents are greatly reduced, more likely to have a fender bender.
In the end its all a gamble. If you're comfortable gambling on $200K or wasting more money to have $5M then go ahead, its your money and your life. I sleep fine knowing I have $1M.
That said, I don't have collision or comprehensive either and still sleep fine. I didn't want to pay another $800 for coverage. Its a gamble, yet an educated gamble. Every year I save $800, every year my car depreciates more. Within ~5 years I hit a breaking point where I've saved about the cost of replacing the vehicle. If I have an at-fault accident or vandalism/theft during those 5 years, I gambled and lost.
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That's quite interesting, actually. You're willing to take the higher variance gamble, but opt out of the lower variance gamble.
What I mean is the odds that you would actually need the $1M third party liability is very low, but the odds that you might need the comprehensive or collision coverage is significantly higher... but the cost difference between the two reflect this.
I totally understand what you're saying though. The cheaper your car is, the easier it is to take this risk.
I mean, if you're driving a rust bucket that is worth $500, but the collision or comprehensive costs $600 a year, obviously it makes no sense to buy the coverage.
For me with my 2006 Yaris, the cost for collision coverage is $476, and that's with a $500 deductible. If the cost difference between the $300 and $500 deductible is $50, then I would be ahead if I get into an at-fault accident less than once every four years.
But for me, I would not opt out of collision or comprehensive, because for collision, even if the accident was a result of someone else doing something stupid, many times ICBC would still try to split the fault. And for comprehensive, obviously can't control whether someone steals or vandalizes your car or not...